Debt Collection Laws in Texas
If you're dealing with debt collection in Texas, here's what actually protects you: a cap on how much of your paycheck can be garnished, a base amount of home equity and bank funds creditors can't touch, and a deadline after which a debt lawsuit generally can't succeed. Current as ofJuly 2026 — sourcing for each section is linked below.
Texas's 2026 debt outlook
Bankruptcy filings in Texas ran 38,477 in the 12 months ending March 2026, versus 32,343 the year before (+19%), per official U.S. Courts data. See the full 51-state filing ranking.
Serious mortgage delinquency (90+ days late) in Texas sits at 1%, trending toward roughly 1.2% by the end of 2026 (rising fastest). See the full 51-state outlook and methodology.
Debt collection complaints to the CFPB from Texas residents ran 33,037 so far in 2026, versus 27,171 over the same window in 2025 (+22%). See the full state-by-state surge ranking.
How much of my paycheck can be garnished in Texas?
If you're in Texas, you have the strongest wage-garnishment protection in the country: the Texas Constitution flatly bans garnishing your current wages for consumer debt, full stop, with narrow exceptions only for court-ordered child support and spousal maintenance. Ordinary credit card, medical, or personal-loan debt simply cannot touch a Texas paycheck through a state-court judgment.
The protection comes from Texas Constitution Art. XVI, § 28. Other state and federal exceptions exist, so the examples here are not an exhaustive list; ordinary consumer judgments remain the key protected category.
Because wage garnishment for ordinary debt is basically off the table here, collectors and debt buyers in Texas lean much harder on other tools once they've got a judgment — bank account levies and property liens especially. That's exactly why the bank-account and homestead protections below matter more to you here than they would in most other states.
Tier: Full ban on wage garnishment for ordinary debt — see the full 20-state ranking.
Can a creditor take money from my bank account in Texas?
Even though your wages can't be garnished in Texas, a judgment creditor can still freeze and levy your bank account — the constitutional wage protection only covers unpaid current wages, not money that's already been deposited. Separately, Texas exempts up to $100,000 in personal property (furniture, tools of trade, a vehicle, and similar) for a family, or $50,000 for a single adult, under Tex. Prop. Code § 42.001.
This trips a lot of people up: once your wages hit your bank account, they generally stop counting as 'wages' for exemption purposes. People assume the constitutional wage protection follows the money into their checking account — it doesn't, especially once it's mixed in with other deposits.
The § 42.002 personal-property list is specific about what's covered: home furnishings, food, farming vehicles and implements, tools of trade, clothing, jewelry (capped at 25% of your overall $100,000/$50,000 limit), two firearms, one vehicle per licensed household member, and certain livestock or pets.
Is my home protected from creditors in Texas?
Your primary residence in Texas is protected from a forced sale with no dollar-value limit at all — the only cap is on acreage: up to 10 acres for an urban homestead, or up to 200 acres for a rural family homestead (100 acres if you're a single adult). This is one of the most protective homestead laws in the country.
'Urban' has a specific legal meaning here (Tex. Prop. Code § 41.002): the property has to sit within a municipality or its extraterritorial jurisdiction (or a platted subdivision), and be served by police protection, paid or volunteer fire protection, and at least three other kinds of municipal utility service. If your property doesn't meet that test, you default to the larger rural acreage allowance.
Because there's no dollar ceiling, a fully paid-off, high-value Texas home within the acreage limit is generally protected from most civil judgments against you — which is exactly why Texas and Florida get mentioned together so often in discussions of homestead-friendly states.
How long can a debt collector sue me in Texas?
A creditor has 4 years to sue you in Texas, whether the debt is written or oral, under Tex. Civ. Prac. & Rem. Code § 16.004 — Texas doesn't shorten the deadline for oral or open-book debt the way a lot of states do, so a credit card balance and an informal verbal agreement run on the exact same 4-year clock.
| Debt type | Statute of limitations |
|---|---|
| Credit card / written contract | 4 years |
| Oral contract | 4 years |
| Promissory note (written) | 4 years |
Texas Civil Practice and Remedies Code § 16.004(c) provides that consumer debt is not revived by payment or oral or written reaffirmation. Section 16.065's generic signed-acknowledgment rule should not be used to suggest otherwise for consumer debt.
See how Texas's 4 years deadline compares to all 20 states.
Does Texas have its own debt collection law beyond the federal FDCPA?
The Texas Debt Collection Act (Tex. Fin. Code Ch. 392) covers you even against original creditors, not just third-party collectors — broader than the federal FDCPA, which generally only reaches third-party debt collectors and debt buyers, not the original lender or hospital billing you directly.
A third-party debt collector or credit bureau within § 392.101's scope must file the required surety bond. The written-dispute investigation and correction process in § 392.202 applies to disputed accuracy in a third-party collector's file; remedies and any DTPA overlap depend on the violation.
Where can I find free or low-cost legal help in Texas?
If you're dealing with a debt lawsuit, garnishment, or collector dispute in Texas, a good starting point is the state bar's lawyer referral service or one of the legal aid organizations below — both can point you to self-help court resources even if you don't qualify for free representation.